Sumitomo Corporation and Perennial Power Holdings have announced a joint venture with CEP Solar to develop clean energy projects across Virginia. The investment will enable Perennial and CEP to commercialize a portfolio of over 1.5 GW of solar projects, with construction slated to begin in late 2025.
Sumitomo and CEP Expand Renewable Energy in Virginia
The joint venture will combine CEP’s local development expertise and vast network with SC Group’s project finance capabilities, enabling the simultaneous development of multiple projects across Virginia. Building on SC Group’s early-stage initiatives in the Midwest and Northeast U.S., this partnership will bolster the group’s ability to meet Virginia’s rapidly increasing demand for renewable energy.
“CEP’s goal is to support Virginia’s successful transition to a clean economy by developing the highest-quality solar and storage projects through lasting relationships. This partnership with Perennial aligns with our core values and accelerates our ability to deliver a diverse portfolio of both solar and battery storage projects. These efforts will provide long-term economic and environmental benefits for our partner communities, landowners, and customers across the Commonwealth,” said Tyson Utt, Co-Founder of CEP.
Sumitomo’s Path to Carbon Neutrality and Renewable Energy Goals
The Virginia Clean Economy Act of 2020 (VCEA) is reshaping the state’s electric grid to achieve 100% clean energy by 2050, driving widespread adoption of renewable energy sources.
In addition to this strong policy, Virginia is home to the world’s largest data center market, handling up to 70% of global daily internet traffic. The state’s position as a key hub for IT infrastructure creates a substantial demand for new renewable energy to help meet net-zero emissions goals.
“Our partnership with CEP gives Perennial greater geographic diversity and access to highly attractive end markets, further accelerating our efforts to expand our renewable energy presence in the United States. We’re excited about the new capabilities and market expertise this team brings to our platform,” said Takuya Yoshizawa, President of Perennial Power Holdings.
To achieve carbon neutrality in its operations by 2050, Sumitomo Corporation is focused on developing businesses that support a sustainable energy cycle. This strategy includes promoting fuel conversion, increasing the supply of renewable energy, and advancing CO2 capture, storage, and utilization technologies. In the renewable energy sector alone, the company plans to provide over 5 GW by 2030.
Since its initial investment in the U.S. onshore wind power business in 2009, the SC Group has invested in and operated seven successful renewable energy projects. Through its subsidiary Perennial, SC Group currently manages five of these projects—primarily onshore wind power—with a total generation capacity of approximately 640 MW and a net owned capacity of 313 MW. The group aims to increase its net owned generation capacity to 1 GW by 2030.
About the Joint Venture Partners
CEP Solar, a subsidiary of Commonwealth Energy Partners, LLC, is a clean energy company based in Richmond, Virginia. The company collaborates with landowners, communities, and customers to develop and manage high-quality solar and storage projects throughout Virginia, delivering long-term economic and environmental benefits to the Commonwealth.
Perennial Power, a wholly-owned subsidiary of Sumitomo Corporation of Americas, was established in 2002 to invest in critical infrastructure projects that support the development and sustainability of local economies and communities. Since its first investment in the onshore wind power sector in 2009, Perennial has expanded its operations to include seven renewable energy businesses. At the core of its investment strategy, Perennial aims to deliver long-term, inclusive benefits to its stakeholders through Sumitomo’s unique value proposition.